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Fama's Llamas has a weighted average cost of capital of 10 percent. The company's cost of equity is 15 percent, and its pretax cost of

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Fama's Llamas has a weighted average cost of capital of 10 percent. The company's cost of equity is 15 percent, and its pretax cost of debt is 7.5 percent. The tax rate is 33 percent. What is the company's target debt-equity ratio? Multiple Choice 0 0.9548 o 1.005 1.0452 1.0553

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